Gift Plan benefits
Inheritance tax savings
The amount gifted into the plan will fall outside the estate after seven years. And any growth in investments held in the plan will immediately be outside the estate.
Faster payments
If your client dies, payment can be made from the trust to beneficiaries or trustees without any need to wait for probate or confirmation.
Flexibility
This plan allows your clients to select beneficiaries without including this in a will. For more flexibility, a Discretionary Trust or Flexible Trust should be used.
Business opportunities
Discussing this plan with your clients can start a wider conversation about estate planning, which could lead to other business opportunities.
How our Gift Plan works
The Gift Plan is simple to set up and operate. It lets your clients make a gift, and allows them to retain some control by acting as a trustee.
Your client will establish a trust and appoint trustees and may nominate beneficiaries too. The gifted assets are then passed to the trust.
A variety of assets can be held by the trust. Trustees decide on the investment strategy of the trust, which can include investing in a bond - either offshore (International Bond) or onshore (Tailored Investment Bond)", and accessing the range of investments available via these products.
Types of trust
With the Gift Plan, your clients can choose the type of trust that works best for them.
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Discretionary Trust
Your client indicates who they would like to benefit from the plan – but the trustees have the final choice.
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Absolute Trust
Your client specifies the beneficiaries when the plan is set up and these beneficiaries can’t be changed by the trustees.
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Flexible Trust
Your client specifies the beneficiaries that have a right to income – but the trustees can change the beneficiaries at any time.
Trustee investment powers
The trustees have wide investment powers, including the ability to select non-income producing bonds such as the offshore (International Bond) or onshore (Tailored Investment Bond).
Using investment bonds means that there is no tax liability until a gain is made. This could be if the bond is fully or partially surrendered, or the 5% tax-deferred withdrawal amount is exceeded. This simplifies the tax and accounting responsibilities of the trustees.
Using Standard Life bonds
Existing Standard Life bonds held by your client can be included in the Gift Plan.
The minimum lump sum payment depends on the type of bond selected. For further information on our bonds, please use our links below:
Gift Plan literature
Our literature library has useful information, forms, guides and key documents for our Gift Plan.